The cryptocurrency market is on a strong rally today, October 2. Bitcoin jumped to $119,000, Ethereum reached $4,375, XRP climbed to $2.965, and Binance Coin (BNB) rose to $1,035. The total market capitalization of all cryptocurrencies has now hit $4.07 trillion.
Altcoins also gained sharply. ZCash (ZEC) spiked by 57%, pushing its valuation past $2 billion. DeXe rose 23%, while SPX6900, Pudgy Penguins, Sonic, and Aerodrome Finance all gained more than 10% in the past 24 hours.
Why the Crypto Market is Rising
The main driver behind today’s rally is growing expectations that the Federal Reserve will cut interest rates at its upcoming meeting. These odds increased after new economic data showed weakness in the U.S. job market.
According to ADP, the economy shed 36,000 jobs in September, following a loss of 3,000 in August. Meanwhile, the Bureau of Labor Statistics (BLS) reported only 22,000 jobs added in August, with revisions showing job losses in June as well. Economists expect the September report, scheduled for release this Friday, though possibly delayed due to the government shutdown to show just 39,000 new jobs.
For investors, a Fed rate cut is positive for risk assets like cryptocurrencies. Historically, Bitcoin and other digital coins have performed strongly when the central bank eases monetary policy or signals a more dovish stance.
Altcoin ETF Approval Season Boosts Market Sentiment
Another key factor driving the crypto rally is the arrival of the altcoin ETF approval season. In recent months, fund managers have submitted more than 70 ETF applications, with most deadlines falling this month.
Litecoin leads the way, as the final deadline for the Grayscale Litecoin Trust is set for today. Other major tokens, such as XRP, Solana, Dogecoin, and Hedera Hashgraph, will follow later in October.
The approval of these ETFs is expected to be highly bullish for the industry, bringing in fresh institutional capital. For perspective, Ethereum ETFs have already attracted over $12 billion in inflows since launch, while Bitcoin ETFs have recorded more than $58 billion.
Strong demand for altcoin ETFs is already evident, with leading assets like Solana, XRP, and Dogecoin seeing significant inflows this year.
